Crypto Rich: Class of 2018
A quandary looms over many crypto enthusiasts around the globe. In 2018, the multibillion dollar question is which coin(s) will Coinbase support next?
Coinbase is one of the hottest companies in tech right now, serving as the primary entry point for many people new to the cryptocurrency space. Many Americans buy their first Bitcoin, Litecoin, or Ethereum through the app, boosting those coins respective values from volume of customers alone. It stands to reason that any other coin to be added would experience a spike in trading and price. Brian Armstrong, the CEO, recently stated on CNBC there would be many more coins to be added in 2018. The only two questions we have to answer are which coins and when they’ll be added.
Unfortunately, I lack the prerequisite crystal ball that determines when new coins will be added. From a business perspective, perhaps it makes sense to introduce them on the first day of the quarter. That could mean we’ll see waves of additions throughout the year, or they could be added on an individual basis. Considering the recent fiasco of adding Bitcoin Cash support, I imagine they would roll the coins one by one. Though it would be more competitive to see multiple coins listed simultaneously, though functionality and security are more important than ideology. Instead, let’s take a look at which cryptocurrencies might be added to Coinbase and GDAX.
The GDAX Digital Assets Framework serves as an outline for what makes a coin or token a suitable asset for trading on the platform. To summarize the contents — the project has to be reputable and well-funded. That could be the case for a number of coins, leaving no obvious choices. This is only a guess, but I would say these coins are candidates with potential to be listed, in no particular order.
2. Ethereum Classic
3. Z Cash
ERC-20 Ethereum Tokens
Dash is a well-established cryptocurrency in the top ten by market capitalization for quite some time. Considering Ethereum Classic was supported previously for a short period, enabling functionality doesn’t seem unreasonable. There exists a Z Cash investment fund backed by Barry Silbert, who helped fund Coinbase and stands to gain significantly from its listing. The Lightning Network and atomic swap compatibility will drive demand for Decred and other coins that have Segregated Witness activated. Based in China, Neo is aiming for governmental compliance to gain adoption and could be a major competitor to Ethereum. Ripple is one of few companies that has a BitLicense, and the number of banks using XRP is on the rise.
As for the ERC20 Tokens, Coinbase may add a feature similar to MyEtherWallet that allows users to store their various tokens. If that were the case, multiple tokens would probably be added at once. That could be the biggest boon to a still-emerging crypto industry and be a significant value add to Ethereum. Operationally, that is the biggest challenge and therefore least likely option at this stage. Though it does raise the question whether the assertion is wildly optimistic or an inevitability in the long run?
Aside from the tokens, the reasons listed could be completely immaterial to Coinbase’s decision. And that is somewhat the point: it’s anybody’s guess right now. Ultimately, the only people that really know are insiders. Whichever coins get chosen will create this year’s crypto millionaires, and will be a wonderful event to witness.
Author’s Note: The opinions expressed herein are my own and do not reflect the views of my employer. I own NEO and XRP (Ripple), this is not an endorsement of any specific investment. Exercise due diligence and never speculate with more than you can afford to lose. If this has entertained or educated you at all, please consider clapping below.